As the economic sanctions on Russia intensify, the consequent surge in oil prices and deepening of supply chain disruptions are expected to keep the stock market under pressure for the foreseeable future. Record high oil and gas prices are already affecting the U.S. stock market. The average cost for a gallon of regular gas hit $4.17 this week.
Since large-cap stocks from companies with versatile product portfolios and robust financials usually withstand uncertain market conditions better than mid-cap or small-cap stocks, it could be wise to bet now on quality large-cap stocks on their price dips.
Fundamentally sound large-cap stocks Regeneron Pharmaceuticals, Inc. (REGN), Telefonaktiebolaget LM Ericsson (publ) (ERIC), and PPG Industries, Inc. (PPG) have witnessed price dips lately, but they are rated Buy in our proprietary rating system.
Regeneron Pharmaceuticals, Inc. (REGN)
Leading biotechnology company REGN discovers, invents, develops, manufactures, and commercializes medicines for treating various diseases worldwide. Its unique ability to translate science into medicine has led to nine FDA-approved treatments. Its market capitalization is $66.72 billion. RGN is headquartered in Westchester County, N.Y.
On Feb. 4, 2022, Robert E. Landry, Executive Vice President, Finance and Chief Financial Officer, REGN, said, "In 2021, Regeneron delivered solid top- and bottom-line growth, driven by strong execution within our core business. With growth continuing across our existing portfolio and investments in our R&D engine supported by our strong balance sheet, we are well-positioned for sustainable long-term growth."
REGN’s total revenues came in at $4.95 billion for the fourth quarter, ended Dec. 31, 2021, up 104.4% year-over-year. The company’s non-GAAP net income came in at $2.71 billion, up 151.1% year-over-year, while its non-GAAP EPS was $23.72, up 148.9% year-over-year.
For its fiscal year 2023, analysts expect REGN’s revenue to increase 7% to $12.55 billion. Its EPS is estimated to grow 6.5% to $45.59 in 2023. It surpassed EPS estimates in each of the trailing four quarters. And over the past six months, the stock has declined 7.5% in price to close yesterday’s session at $614.74.
REGN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
REGN has a B grade for Value and Quality. Within the Biotech industry, it is ranked #21 of 428 stocks. Click here to see the additional POWR Ratings for Momentum, Growth, Stability, and Sentiment for REGN.
Click here to checkout our Healthcare Sector Report for 2022
Telefonaktiebolaget LM Ericsson (publ) (ERIC)
Headquartered in Stockholm, Sweden, ERIC provides communication infrastructure, services, and software solutions to telecom and other sectors. Its four segments are Networks; Digital Services; Managed Services; and Emerging Business and Other. Its market capitalization is $28.63 billion.
On March 2, 2022, Indosat Ooredoo Hutchison and ERIC strengthened their strategic partnership to further expand their 5G footprint in Indonesia. Jerry Soper, Head of ERIC, Indonesia, said, “Ericsson is delighted to further strengthen its partnership with Indosat Ooredoo Hutchison by providing 5G services in Jakarta, Bogor, Tangerang, and Bekasi. 5G will play a critical role in accelerating the digitalization of the economy and stimulating next-generation innovation for consumers and enterprises in Indonesia.”
For the fourth quarter ended December 31, 2021, ERIC’s net sales increased 2.5% year-over-year to SEK 71.33 billion ($7.37 billion). Its net income came in at SEK 10.15 billion ($1.05 billion), up 41.1% year-over-year, while its EPS came in at SEK 3.02, up 33.6% year-over-year.
ERIC’s revenue is expected to be $27.40 billion in its fiscal year 2023, representing a 1.8% year-over-year rise. The company’s EPS is expected to increase 13.1% per annum for the next five years. The stock has declined 26.4% in price year-to-date to close yesterday’s session at $8.00.
ERIC has an overall B grade, which equates to a Buy in our POWR Ratings system. It has an A grade for Value and a B for Sentiment and Quality. ERIC is ranked #4 of 55 stocks in the Technology - Communication/Networking industry. Click here to check additional ratings for ERIC (Growth, Momentum, and Stability).
Click here to checkout our 5G Industry Report for 2022
PPG Industries, Inc. (PPG)
PPG manufactures and distributes paints, coatings, and specialty materials worldwide. The company’s segments are Performance Coatings and Industrial Coatings. Its market capitalization is $27.79 billion.
On Feb.7, 2022, PPG announced that it had agreed to acquire the powder coatings business of Arsonsisi, an industrial coatings company in Milan, Italy. Michael Shukov, PPG general manager, industrial coatings, Europe, Middle East, and Africa, said, “We are pleased that the addition of this business will offer our EMEA customers expanded powder coating options to meet the increasing demand for these sustainably advantaged coatings.”
For the fourth quarter, ended Dec. 31, 2021, PPG’s net sales increased 11.5% year-over-year to $4.19 billion. The company’s net income came in at $286 million, up 5.1% year-over-year, while its EPS was $1.20, up 5.3% per annum.
Analysts expect PPG’s revenue to increase 10.1% to $18.49 billion in 2022. Its EPS is estimated to increase 21.4% to $9.02 in 2023. It surpassed EPS estimates in three of the four trailing quarters. The stock has declined 31.7% in price year-to-date to close yesterday’s trading session at $117.74.
PPG’s POWR Ratings reflect solid prospects. The company has an overall B rating, which equates to a Buy in our proprietary rating system.
In addition, it has a B grade for Sentiment and Quality. PPG is ranked #30 of 88 stocks in the A-rated Chemicals industry. Click here to see the additional POWR Ratings for PPG (Growth, Value, Stability, and Momentum).
REGN shares were trading at $618.94 per share on Wednesday morning, up $4.20 (+0.68%). Year-to-date, REGN has declined -1.99%, versus a -10.89% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.
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